Impact Barclays scandals on stock prices

Impact Barclays scandals on stock prices : Barclays paid £290 million to settle claims that it used underhand tactics to try to rig financial markets. The penalties from UK and US regulators, including a record £59.5 million fine from the Financial Services Authority (FSA), followed allegations that it manipulated Libor and Euribor interbank lending, which govern the rates at which banks are prepared to lend to each other in the wholesale money markets.

In the depths of the financial crisis, Barclays gave false information about the interest rates it had to pay to borrow money in an effort to paint a false picture of its health to markets.

Barclays shares slid 15% at one stage - wiping £3 billion from its market value - as investors ditched the stock amid fears the fines could be dwarfed by lawsuits and damages.

The bank said a phone call between Barclays boss Bob Diamond and the Bank of England ultimately led to some of the rate-rigging actions.

Jerry del Missier, who was president of investment arm Barclays Capital at the time, told staff to lower the key interbank lending rate after misunderstanding Mr Diamond's account of the conversation with Bank of England deputy governor Paul Tucker.

Mr Diamond and Mr del Missier stepped down with immediate effect following increased pressure from politicians, shareholders and former Barclays directors in the wake of the scandal.

Small businesses
Barclays revealed a potential £450 million bill for mis-selling complex financial products to unwitting small businesses.

It was one of four banks which agreed with the FSA to compensate customers who were mis-sold interest rate hedging products.

Also known as interest rate swaps, the complicated derivatives products may have been sold to businesses as protection - or to act as a hedge - against a rise in rates without the customer fully grasping the risks.

Qatar
Barclays revealed that the Serious Fraud Office (SFO) has launched an investigation into payments made between the bank and Qatar at the height of the financial crisis.

The bank said last month that the matter was being investigated by the FSA but revealed today that the SFO has launched its own inquiry.

The organisation is understood to be looking at whether disclosure of payments to advisers was sufficient when it raised more than £5 billion of emergency capital from Middle Eastern investors in 2008.

The investigations are thought to be related to funds raised from investors, which effectively allowed Barclays to avoid following in the footsteps of Lloyds and Royal Bank of Scotland in taking a bailout.

The deals were controversial because they offered favourable terms not available to other shareholders, although there is no suggestion that the investors have done anything wrong.

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